Types of Business Entities in Singapore: Pte Ltd, LLP, Branch & More (2026)

Before you register a company in Singapore, you choose a legal structure — and it is a decision worth getting right, because it determines your liability, your tax treatment, whether foreigners can own 100%, and how easily you can raise capital or bring in partners later. Singapore offers several business structures through ACRA (the Accounting and Corporate Regulatory Authority), but for the vast majority of foreign-owned setups the answer is a Private Limited Company (Pte Ltd). This guide explains every structure, who each one suits, and how they compare — so you can choose with confidence.

Private Limited Company (Pte Ltd)

The flagship structure and the right answer for almost every foreign-owned business. A Pte Ltd is a separate legal entity incorporated under the Companies Act 1967, so its shareholders enjoy limited liability — their risk is capped at what they invest. It allows 100% foreign ownership across the great majority of activities, up to 50 shareholders, and access to Singapore's tax exemptions and 90+ Double Taxation Agreements. It needs at least one Singapore-resident director, a company secretary and a registered office. If you are setting up to trade, hold assets, raise investment or build a regional headquarters, this is the vehicle.

Subsidiary Company

A subsidiary is simply a Pte Ltd whose shares are held by a foreign parent company. It is a separate legal entity from the parent, so the parent's liability is generally limited to its shareholding, and the subsidiary is taxed as a Singapore resident company — qualifying for the same exemptions as a locally-owned Pte Ltd. It is the standard route for an overseas group that wants a fully-fledged, ring-fenced Singapore operating company.

Branch Office

A branch is an extension of a foreign parent company registered with ACRA — not a separate legal entity. The parent carries the branch's legal liabilities, and the branch operates within a scope filed at registration. Branches are treated as non-resident for tax and so generally do not access the local SME exemptions. This structure suits larger groups projecting a regional arm without creating a separate subsidiary, or where the parent's balance-sheet visibility is contractually required.

Representative Office (RO)

A representative office is a temporary, non-revenue-generating presence, registered with Enterprise Singapore (for non-financial sectors) or the Monetary Authority of Singapore (for financial services). An RO can carry out market research, marketing and liaison work but cannot trade or issue invoices, and it is limited to three years before it must convert to a Pte Ltd or branch. It suits companies still in the market-entry, due-diligence phase.

Limited Liability Partnership (LLP)

An LLP is a hybrid: a separate legal entity like a company, but run like a partnership. It needs at least two partners, and each partner's liability is generally limited (a partner is not personally liable for another partner's wrongful acts). An LLP is taxed at the partners' level rather than as a company, so it does not access corporate tax exemptions. It is popular with professional-services firms — lawyers, accountants, consultants — who want partnership flexibility with liability protection.

Sole Proprietorship

The simplest structure — one owner, easy to register — but the owner and the business are the same legal person, so liability is unlimited: personal assets are exposed to business debts. Profits are taxed as the owner's personal income. A sole proprietorship can only be registered by a Singapore citizen, permanent resident or an eligible pass holder (a foreigner abroad cannot own one directly). It suits very small, low-risk local ventures — most growth-oriented or foreign founders should choose a Pte Ltd instead.

Partnership (General & Limited)

A general partnership (2–20 partners) is like a shared sole proprietorship: it is not a separate legal entity and the partners have unlimited, joint liability. A limited partnership (LP) has at least one general partner (unlimited liability, manages the business) and one limited partner (liability capped at their contribution, no management role). Partnerships are far less common for foreign-owned businesses than the Pte Ltd or LLP because of the liability exposure.

Singapore business structures compared

Which structure is right for you?

For the overwhelming majority of foreign entrepreneurs and international groups, the Private Limited Company (Pte Ltd) is the right choice — it gives limited liability, 100% foreign ownership, the best tax treatment and the strongest credibility with banks and partners. A subsidiary is the same vehicle when an overseas parent owns it; a branch or representative office is for specific, narrower cases; and sole proprietorships and general partnerships are rarely the right answer once liability and growth are considered. The wrong choice creates expensive restructuring later, so it is worth mapping the decision to your activity, liability appetite and regional intent before you file. See the full Singapore company formation process, or — if you are choosing between jurisdictions — our Singapore vs Dubai comparison.

Why structure your Singapore entity with Avyanco

Avyanco's Singapore practice advises on the right vehicle first, then handles the incorporation end to end — ACRA registration through BizFile+, the mandatory resident director and company secretary, registered office, IRAS corporate tax and GST setup, and bank introductions through DBS, OCBC and UOB. Because we also run UAE, Qatar and Saudi Arabia setups, groups expanding across Asia and the Gulf can structure the whole footprint under one partner. Talk to our team to choose the right Singapore structure for your business.